Annual Report 2012 - Indesit

Consolidated financial statements at 31 December 2012 – Notes
The cost of closing activities in certain industrial areas mainly reflects the impairment of property, plant
and equipment and other costs associated with factory closures.
Net provisions for legal disputes relate to the litigation in progress.
The non-recurring items included in cost of sales, selling and distribution expenses, and general and
administrative expenses are detailed below.
(million euro)
Cost of sales
Selling and
distribution
expenses
General and
administrative
expenses Year 2012
Restructuring expenses (13.7) (2.9) (1.1) (17.7)
Other non-recurring income and expenses 19.2 15.5 5.5 40.2
Total non-recurring income and expenses 5.5 12.6 4.4 22.5
(million euro)
Cost of sales
Selling and
distribution
expenses
General and
administrative
expenses Year 2011
Restructuring expenses 1.8 (1.3) (1.5) (1.0)
Other non-recurring income and expenses 3.0 6.2 0.6 9.7
Total non-recurring income and expenses 4.8 4.8 (0.9) 8.8
Attachment 3 (Consolidated income statement for the year ended 31 December 2012, prepared
pursuant to Consob Resolution 15519 dated 27 July 2006 and Consob Communication DEM/6064293
dated 28 July 2006) summarizes the overall effect of non-recurring items on the consolidated income
statement.
Non-recurring items do not have an immediate cash flow effect with regard to the redundancy
incentive costs recognised in accordance with IAS 37 (incurred on average over the twelve months
following accounting recognition); the provisions recognised for risks (often not possible to determine
when they will crystallize); impairment losses (no cash flow effect), and changes in the pension fund
liability as a result of non-recurring phenomena.
8.6 Interest expense,
interest income,
exchange rate
differences,
other financial
expenses and
share of profit/
loss of associates
and other
Interest expense comprises:
(million euro) Year 2012 Year 2011
Bond interests (3.1) (4.7)
Interest on medium- and long-term bank loans (1.7) (0.9)
Interest on short-term bank, loan and borrowings (11.8) (6.2)
Other interest expenses (7.3) (4.9)
Mark-to-market derivatives related to loans 0.0 (0.9)
Interest expenses on pension funds and post-employment benefits UK (1.9) (2.0)
Interest expenses (25.8) (19.6)
This increase was due to higher average borrowing, a broadening of the market spreads for
short-term debt and the change of the impact on the income statement of the interest-rate swap,
which converted part of the floating-rate debt into fixed-rate debt (see note 11). The reduction in the
reference rates made a positive contribution.
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